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Pre-approval requests are going through the roof as South East Queensland experiences a surge in interstate migration, according to a finance expert.
A recent surge in interstate migration has led to a significant spike in property sales and growth in demand for home loan applications across the area, Brisbane-based finance brokerage Borro said.
Over the September quarter, Brisbane gained the most from net internal migration, with 3,200 people moving to the Sunshine State, recent data from the Australian Bureau of Statistics revealed.
But in addition to population growth, the relaxation of assessment rates by banks has aided the boost in loan applications and property sales, Borro owner Cara Giovinazzo said.
“Our clients are able to borrow more than they could a year ago,” Ms Giovinazzo said.
“We are also seeing that many more people are selling to cash in on their own equity increase. But they have to buy again, so it’s driving turnover in properties and adding more buyers to the pool.”
With more interstate buyers in the market, especially those from NSW and Victoria, many local buyers are missing out on homes even after offering above-market value, Ms Giovinazzo revealed.
“Many of them are reporting that their offers are usually beaten by interstate buyers,” she said.
According to Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella, the interest from Victoria and New South Wales is expected to continue growing as unique opportunities in the Sunshine State become more apparent, particularly more affordable home options.
“Freestanding houses on good-sized land within a 15-kilometre radius of Brisbane CBD will continue being hastily snapped up by those wanting proximity to the city with room to move,” she predicted.
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